The Union Cabinet of Government of India has decided to sub - categorise OBC list (Other Backward Classes) which will have far reaching impact in politics and society of India. The Government will set up a commission to examine the issue of sub - categorisation of the Other Backward Classes (OBC).

Following are the terms of reference for the committee:

1) The Commission will examine the extent of inequitable distribution of benefits of reservation among various castes and communities that come under the Central OBC list.

2) It will work out the mechanism, criteria and parameters for the actual sub-categorisation. The total reservation will be at 27 percent and the committee will have to do the re-arranging within this limit.

3) The committee will suggest measures to bring the order to the Central list of OBCs by removing any repetitions.

The decision is aimed at facilitating the better distribution of benefits of reservations among various castes within OBCs. It has to be noted that 11 States in India, including Andhra Pradesh, Telangana, Jharkhand, West Bengal and Jammu region have such sub- categorisation OBCs in State government jobs. The committee will submit its report within 12 weeks.

Limit raised for Creamy Layer:

The Government has also raised the creamy layer ceiling for the Other Backward Classes to Rs 8 lakh per annum from the present Rs 6 lakh per annum for Central government jobs. With this those earning upto Rs 8 lakh per annum would now get the benefits of OBC reservations.